Canadian grain exporters are benefiting from all-time low ocean freight rates. The Baltic Freight Index, an indicator of ocean shipping prices, hit an all-time low last week.
"The freight rates peaked about five-six years ago and, ever since, they've been coming down. It's just a matter of over-supply of vessels versus the freight that needs to be put on the vessels," says Bruce Burnett of CWB.
As an example, the price of shipping from the West Coast to Japan is around $20 per tonne.
"That's extremely low relative to not only the peaks of five, six years ago but even a historical average rate," he says.
Burnett says it's unlikely that shipping rates will increase significantly in the near future.
"We're probably hitting a bottom, but with the supply of vessels out there right now, you're probably not going to see an uptick from these lower levels for quite some time," he says.
The low freight rates allow exporters like CWB to compete in markets that are out of reach with higher shipping rates.
"We can go to markets that weren't competitive under the high freight rate regime now, so generally speaking it's good news for our export demand."
Grain markets have likely reached the bottom of the downward trend that resulted from last year's record crop around the world, according to
After three years of consultations and a record number of submissions during a public comment period last year, the new Canadian Code of P
Despite higher prices and lower feed costs, the number of cattle in Canada fell 0.7 percent from January 1st, 2013 to January 1st of this
Farmers close to the US border are trying to truck more grain south as a result of the rail bottleneck in Western Canada. "There's a lot of
The shareholders had their say on the sale of a farmer-owned grain company in southeast Saskatchewan to Parrish & Heimbecker at a special sh
The conflict between Russia and Ukraine has started to have a noticable impact on world grain markets. Wheat futures and - to a lesser exte
Western Canadian farmers will be planting more canola this spring than in 2013, according to projections from international grain trader Lou
In the discussion on grain transportation, Leader of the PC Party of Saskatchewan Rick Swenson said neither the Federal or Provincial Govern
US oat millers are scrambling to find oats to keep their facilities operating as a result of the challenges with moving grain by rail in Wes
Mark Lynas discusses his conversion from opposing to supporting the use of genetically modified cropsEnvironmental groups should support gen
The federal agriculture minister says his government is considering all options, including new regulations, to address the current backlog o
Major yield increases are possible for most crops through improved management, according to one of the hosts of a South Dakota-based agronom
The railways' inability to move grain to market is adding costs throughout the grain supply chain from farmers to country line elevators t
While Canada and the US are battling on the ice in Sochi this week, teams from both countries also faced off in Geneva at the World Trade Or
With record-sized grain inventories on the prairies, grain supplies at ports on the west coast are at or near record lows, reports the hea